Bonus schemes

As part of our planned move to fixed point salaries, we have discussed the option of offering a bonus scheme for staff that are asked to take on extra work for a short time, or perhaps deliver an excellent project deserving of recognition.

I'm not sure on how to establish nominations, how to assess each nomination, should the bonus be as a percentage of their salary, or a standard sum for all awards?

This will be the first time we have had a bonus scheme, so if anyone can throw me some tips on how to set it up I'd be most appreciative. 



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  • Some really great feedback, and lots for me to get stuck into. It would be a great subject for a research project!

    Many thanks,



  • Hi Steve,

    We have similar schemes to Mike and Rachel.

    Our incentive scheme is based on the performance of certain company KPI's. We also link our annual appraisal system into this. All employees have an end of year appraisal and receive scores for achievement against personal objectives and company values. The overall score received then equates to how much the incentive payment is, up to a maximum of 10% of annual salary.

    We also have an Employee of the Month scheme, which rewards employees for offering outstanding customer service, whether that's internal or external. Each winner receives a £250 John Lewis voucher. Each monthly winner then gets automatically entered for our end of year awards, the prizes for these are £800 tax free. The other awards are for outstanding training and development, team player and CEO award.

    We pay additional responsibility allowances to employees that take on extra responsibilities for example maternity or long-term sick cover.

    We also have an ideas scheme, which rewards employees that have their ideas implemented. The prizes for these are £25 Sainsbury's vouchers.

    Hope this helps.

  • Hi Steve,

    I've worked in a few organisations that run bonus schemes so more than happy to share.

    First thing to mention is that bonus schemes don't always have to financial or can be a combination. We had a incentive scheme called 'Directors Award' and we had other ways of 'thanking' someone via gifts etc

    You could nominate someone against 1 of the organisation values.....complete a form with evidence of what they did and why they deserve it - this was then submitted to the 'leadership' team who would decide if it was worthy. If they got it they would get a framed certificate and £100 vouchers.

    We also had a profit related bonus where by if you achieved a 4 or a 5 rating on your end of year performance you would be inline for a bonus based on a % of your salary - obviously depending IF you make a profit ;)

    It could be between 4-10% for a 4 rating and 7-15% for a 5 rating

    Hope this helps


  • Hi Steve

    We have a number of different bonus schemes in place, one is a profit related bonus which is very much dependant on how the company as a whole is doing. Another we run is Employee of the Year which Managers put forward and Directors decide on. We normally have about 8 names and all nominees get a fixed sum, then whoever comes runner up gets a but more and then again for the Winner. I can email you details if you like. We have also done one off bonus's for those who have put in extra without any complaints.


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